Seeking to create awareness about CBDCs in general and planned features of the Digital Rupee (e₹), in particular, the Reserve Bank of India has released a concept note on the Central Bank Digital Currency (CBDC) for India. The Concept Note explains the objectives, choices, benefits, and risks of issuing a CBDC in India. The Note also seeks to explain Reserve Bank’s approach towards introduction of the CBDC.
The Concept Note discusses key considerations such as technology and design choices, possible uses of Digital Rupee, issuance mechanisms, etc. It examines the implications of introduction of CBDC on the banking system, monetary policy, financial stability, and analyses privacy issues.
As per the Concept Note, the CBDC offers an additional payment avenue to users and is not aimed at replacing existing payment systems. The Reserve Bank will soon commence pilot launches of e₹ for specific use cases.
Read the concept note here.